¹⁴I should note here that the following analysis is really only correct for those interpretations of the model in which consumers care about the absolute level of wealth or consumption. If, instead, utility from $wT+1$ depends on how large one’s own $wT+1$ is compares to the $′ wT +1s$ of others, bequest taxes would likely have a much smaller eﬀect than that discussed below. For an analysis of related issues in income taxation, see the paper by Frank in this volume.